Mayor Jimmy Giannettino said rising costs, uncertain revenues and ongoing negotiations with the Auburn Enlarged City School District dominated the city’s financial outlook during a wide-ranging interview on Inside Government with Guy Cosentino. The mayor also discussed potential housing and hotel development, infrastructure projects and state aid during the appearance with host Guy Cosentino.
Rising costs driving spending freeze
Giannettino said Auburn is operating under both a spending and hiring freeze as expenses continue climbing while some revenues lag projections.
Health insurance is the single biggest driver. Premiums have increased 54% over two years, including a 12% jump this year alone — about $1.2 million on a $10 million policy.
The city also saw an $800,000 higher-than-expected pension payment and significant increases in equipment and utility costs, including snowplow trucks rising from roughly $130,000 five years ago to about $240,000 today.
Giannettino said the trend is unsustainable.
“I don’t think it’s sustainable any longer. The numbers speak for themselves,” he said.
The city expects to use a significant amount of fund balance in the next budget cycle, leaving about $800,000 — below its target level.
Revenue mixed: taxes stable, parking weak
Sales tax revenue is tracking close to projections, and cannabis dispensary taxes are performing slightly better than expected.
The new occupancy tax is projected around $400,000 annually, though early returns appeared low because quarterly payments had not yet arrived.
Parking revenue, however, is underperforming due to aging kiosks and unpaid tickets. The city is considering switching to app-based payments such as Payngo and allowing residents to settle past fines without additional penalties.
Crossing guards dispute with school district
A major point of tension involves crossing guard costs.
The city currently pays roughly $200,000 annually for about 16 crossing guards serving the district, including locations outside city boundaries.
Giannettino said Auburn taxpayers should not subsidize services benefiting other municipalities and asked the school district to share costs — first fully, then partially. The district has resisted, citing legal concerns.
He compared the issue to school resource officers, whose cost the district gradually assumed over several years after negotiations.
Giannettino acknowledged he went too far when he publicly suggested voting against the school budget but stood by encouraging residents to review it.
He said his role is “to educate them and to advocate for them,” not tell people how to vote.
State aid increase offers temporary relief
A proposed increase in temporary AIM (Aid and Incentives to Municipalities) funding would provide Auburn about $1.2 million — a major boost after roughly 15 to 16 years without a permanent increase.
Giannettino called the aid helpful but uncertain because it remains temporary.
He said municipalities hope to make the funding permanent while the state debates broader financial assistance tied to New York City aid proposals.
Housing and hotel development proposed
Several development projects are under consideration.
Affordable housing (Aurelius Avenue): A Syracuse developer is proposing 40 affordable condominiums priced roughly between $60,000 and $100,000, seeking a sales tax exemption but not a PILOT agreement.
North Street apartments: A nonprofit developer plans to reapply for state funding after skipping the last application round.
Dunning Avenue project: Financial challenges have slowed progress, though discussions continue.
New hotel on Grant Avenue: An 89-unit Residence Inn by Marriott is proposed, featuring extended-stay rooms with kitchens. The project would redevelop a long-vacant property and could spur additional commercial development.
Bridge replacement moving forward
The Lake Avenue Bridge project is advancing with bonding approval. Total cost is about $8 million, including roughly $4.9 million from the BridgeNY program.
Construction is expected to begin after the school year and continue through the next season.
Giannettino said the city’s focus remains balancing rising expenses while protecting taxpayers and maintaining services.
“We just want to work collaboratively to figure those things out,” he said regarding partners and shared costs.
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